1.1 	A bill for an act
1.2 	relating to employment; providing health coverage to certain unemployed 
1.3 	workers; assessing a workforce support fee; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. TEMPORARY MINNESOTACARE COVERAGE FOR 
1.6 	UNEMPLOYED WORKERS.
 1.7 		Subdivision 1.Eligibility requirement. An applicant for unemployment benefits 
1.8 	is eligible for temporary MinnesotaCare coverage without meeting any of the eligibility 
1.9 	criteria under Minnesota Statutes, chapter 256L, if:
1.10 	(1) the applicant was laid off from the applicant's most recent employment due to lack 
1.11 	of work, and the layoff is not expected by the applicant or the employer to be temporary;
1.12 	(2) the layoff was not due to the seasonal nature of the applicant's work;
1.13 	(3) the applicant has served the nonpayable waiting week under Minnesota Statutes, 
1.14 	section 268.085, subdivision 1, clause (5);
1.15 	(4) the applicant resides in Minnesota;
1.16 	(5) the applicant has wages paid of $5,000 or more in each of the eight consecutive 
1.17 	calendar quarters before the effective date of the application for unemployment benefits;
1.18 	(6) the applicant's spouse does not have health care coverage available through the 
1.19 	spouse's employer in which the applicant could be considered a dependent and receive 
1.20 	health care through dependent coverage;
1.21 	(7) the applicant is not eligible for federal reimbursement or federal payment of a 
1.22 	portion of COBRA premiums under the American Recovery and Reinvestment Act; and
1.23 	(8) at the time of application for unemployment benefits, these benefits are the 
1.24 	applicant's primary source of income.
2.1 		Subd. 2.Family coverage. If the applicant meets the criteria under subdivision 1, 
2.2 	the applicant's family is also eligible for temporary MinnesotaCare under this section and 
2.3 	is not required to meet eligibility criteria under Minnesota Statutes, chapter 256L. For 
2.4 	purposes of this subdivision, "family" has the meaning provided in Minnesota Rules, part 
2.5 	9506.0010, subpart 11, and shall include any family member who was covered under any 
2.6 	health coverage provided by the applicant's most recent employer and who does not have 
2.7 	other health coverage available.
2.8 		Subd. 3.Covered services. Temporary MinnesotaCare coverage under this section 
2.9 	shall include all health services provided under Minnesota Statutes, section 256L.03.
2.10 		Subd. 4.Notice and application. The commissioner of employment and economic 
2.11 	development must, as part of the application for unemployment benefits, inform an 
2.12 	applicant that temporary MinnesotaCare coverage may be available, and that if coverage 
2.13 	is elected a deduction of ten percent of the applicant's weekly benefit amount will be made 
2.14 	to pay a portion of the cost of coverage. If the applicant elects coverage, then as part of 
2.15 	that application process, the commissioner of employment and economic development 
2.16 	must obtain information necessary and determine if the applicant is eligible for temporary 
2.17 	MinnesotaCare under this section. This information must be immediately provided to the 
2.18 	commissioner of human services. The commissioner of human services must notify the 
2.19 	applicant of eligibility or non-eligibility and automatically enroll the applicant and the 
2.20 	applicant's family members in temporary MinnesotaCare coverage if eligible under this 
2.21 	section. An enrollee or the enrollee's family members shall be disenrolled if other health 
2.22 	care coverage becomes available to the enrollee or the enrollee's family members or the 
2.23 	period of coverage provided under this section expires.
2.24 		Subd. 5.Payments by individual. If the individual is deemed eligible for temporary 
2.25 	MinnesotaCare, ten percent of an individual's weekly unemployment benefit amount shall 
2.26 	be deducted and withheld from the applicant's weekly unemployment benefit payment in 
2.27 	accordance with section 4. The individual and the individual's family members are exempt 
2.28 	from the premium requirements in section 256L.15.
2.29 		Subd. 6.Cost sharing. Individuals covered under this section are subject to the 
2.30 	cost-sharing requirements specified in Minnesota Statutes, section 256L.03, subdivision 
2.31 	5, except that the ten percent coinsurance requirement for inpatient hospital services 
2.32 	described in section 256L.03, subdivision 5, paragraph (a), clause (1), does not apply.
2.33 		Subd. 7.Managed care exemption. Individuals covered under this section are 
2.34 	exempt from managed care enrollment under Minnesota Statutes, section 256L.12, and 
2.35 	services provided shall be reimbursed on a fee-for-service basis payable exclusively with 
2.36 	funds from the workforce health coverage account created in section 3.
3.1 		Subd. 8.Duration of coverage. Individuals are eligible for temporary 
3.2 	MinnesotaCare under this section for five calendar months. The five-calendar months 
3.3 	period begins on the first day of the month following the date the commissioner of human 
3.4 	services receives the eligibility information from the commissioner of employment and 
3.5 	economic development under subdivision 4. At the end of this period, an individual may 
3.6 	apply for MinnesotaCare in accordance with chapter 256L, and eligibility criteria must be 
3.7 	met with the exception of section 256L.07, subdivision 3.
3.8 		Subd. 9.Expiration. Enrollment in temporary MinnesotaCare may not be made 
3.9 	under this section after July 31, 2011.

3.10 	EFFECTIVE DATE. This section is effective January 1, 2010.

3.11 	Sec. 2. WORKFORCE SUPPORT FEE.
 3.12 		Subdivision 1.Fee. Notwithstanding Minnesota Statutes, section 116L.20, the 
3.13 	special assessment under that section is suspended from January 1, 2010, until December 
3.14 	31, 2012. Effective January 1, 2010, there is assessed, in addition to unemployment taxes 
3.15 	due under Minnesota Statutes, section 268.051, a workforce support fee of .2 percent on 
3.16 	taxable wages. This fee is due and must be paid on the same schedule and in the same 
3.17 	manner as unemployment taxes under Minnesota Statutes, section 268.051. Any amount 
3.18 	past due under this section is subject to the same interest and collection provisions as 
3.19 	unemployment taxes. This fee expires on December 31, 2012.
3.20 		Subd. 2.Use of funds collected. An amount equal to .1 percent on taxable wages 
3.21 	is deposited in the workforce development fund provided for under Minnesota Statutes, 
3.22 	section 116L.20, less reimbursement for one-half of the collection cost of the total amount 
3.23 	of the fee. An amount equal to .1 percent on taxable wages, less reimbursement for 
3.24 	one-half of the collection costs of the total amount of the fee, is deposited in the workforce 
3.25 	health coverage account created in section 3.
3.26 		Subd. 3.Quarterly review and possible reduction of workforce support fee. The 
3.27 	commissioner of human services shall on a quarterly basis review the sufficiency of funds 
3.28 	in the workforce health coverage account to pay the obligations of the account. If the 
3.29 	commissioner determines there is an excess of funds, the commissioner shall notify the 
3.30 	commissioner of employment and economic development who must reduce that portion of 
3.31 	the workforce support fee that is for deposit in the account to a level designed to eliminate 
3.32 	the excess based on an evaluation of current and future labilities of the account. If the 
3.33 	commissioner of human services determines there is an insufficiency of funds in the 
3.34 	account, the commissioner shall notify the commissioner of employment and economic 
4.1 	development who must increase the portion of the fee for deposit in the account but not 
4.2 	above the level specified in subdivisions 1 and 2.

4.3 	Sec. 3. WORKFORCE HEALTH COVERAGE ACCOUNT.
 4.4 	(a) Effective January 1, 2010, the workforce health coverage account is created as a 
4.5 	special account in the special revenue fund in the state treasury. This account lapses on 
4.6 	June 30, 2014, and any money remaining in the account on that date must be paid into the 
4.7 	unemployment insurance program trust fund. This account consists of all money collected 
4.8 	by the workforce support fee provided by section 2 and designated for deposit in this 
4.9 	account and all money deducted and withheld from an applicant's unemployment benefit 
4.10 	payment for temporary MinnesotaCare coverage under section 1 and all interest earned on 
4.11 	any money in this account, less reimbursement of collection costs under paragraph (d).
4.12 	(b) Money in the account is appropriated to the commissioner of human services and 
4.13 	is allocated and may be expended only to pay for the cost of temporary MinnesotaCare 
4.14 	coverage under section 1.
4.15 	(c) Any funds not allocated, obligated, or expended in a fiscal year are available for 
4.16 	allocation, obligation, and expenditure in the following fiscal year.
4.17 	(d) Because the administrative cost of collection of the workforce support fee is 
4.18 	borne by federal money made available only to administer the unemployment insurance 
4.19 	program, the commissioner of employment and economic development must negotiate 
4.20 	with the United States Department of Labor the amount of any reimbursement for costs 
4.21 	related to the collection of the fee.

4.22 	Sec. 4. HEALTH CARE COVERAGE DEDUCTION.
 4.23 	(a) An applicant for unemployment benefits who meets the eligibility requirement 
4.24 	for temporary MinnesotaCare coverage for unemployed workers must have the option 
4.25 	of electing MinnesotaCare coverage. If the applicant elects coverage and is determined 
4.26 	eligible for temporary MinnesotaCare, the commissioner of employment and economic 
4.27 	development must deduct and withhold ten percent of the applicant's weekly benefit 
4.28 	amount from any payment made to the applicant. The weekly benefit amount is that 
4.29 	amount computed under Minnesota Statutes, section 268.07, subdivision 2. This deduction 
4.30 	occurs after all other deductions and adjustments. If the unemployment benefit payment 
4.31 	prior to this deduction is insufficient to cover the ten percent cost, the payment to the 
4.32 	applicant for that week is reduced to zero, but the applicant is not liable for the deficiency.
4.33 	(b) The amount deducted and withheld from the applicant's unemployment benefit 
4.34 	payment must be immediately deposited into the workforce health coverage account.
5.1 	(c) The amount deducted is for all purposes considered and treated as if it were paid 
5.2 	to the applicant as unemployment benefits.